Dollar rises two weeks in a row

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The Australian dollar recorded its second straight weekly rise as equity and commodity price gains signalled that worldwide economic growth is picking up, increasing demand for the country's exports.

The currency rallied to its highest level in three weeks after US and Japanese reports indicating that growth in the two largest economies is accelerating bolstered stocks and commodities. Exports make up a fifth of Australia's economy, and 60 per cent of overseas shipments are of raw materials.

"The currency has traded very much on global growth perceptions as well as commodity price perceptions," said Alex Schuman, manager of foreign-exchange strategy at Commonwealth Bank. "The unwinding of risk aversion will continue and the Australian dollar will rise."

The dollar touched a three-week high of US72.01c around midday on Friday, before closing at US71.76c. It closed at US70.20c on the previous Friday.

The US economy grew at a 4.4 per cent annual pace from January through March, compared with a previous government estimate of 4.2 per cent.

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The faster-than-forecast growth boosted the price of metals, including copper and gold, said Greg Gibbs, a senior currency strategist at RBC Capital Markets.

Gold, of which Australia is the world's third-biggest producer, rose to a one-month high on New York futures markets and copper surged to a five-week peak.